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GBPUSD: US figures sends USD even higher

GBPUSD Forex Eliott Wave
GBPUSD 1 Hour Chart
Tuesday, 3 September 2013 at 11:13:00PM AEST
Better than expected US ISM Manufacturing PMI numbers and higher US yields sends USD even higher...
 
GbBPUSD 1 Hour Chart  (»Go to 4H Chart)
Tuesday, 3 September 2013 at 11:13:00PM AEST

Better than expected US ISM Manufacturing PMI numbers and higher US yields sent USD even higher on the intra-day basis. EURUSD almost hit 1.3140 while GBPUSD extended its weakness from earlier spike to 1.5600. We still think that move from 1.5425 is contra-trend and that larger downtrend will resume. However, we need impulsive weakness and break out of that lower side of a corrective channel to confirm further weakness on pound.


4Hour

BPUSD 4 Hour Chart
Tuesday, 3 September 2013 at 3:40:00PM AEST – bearish reversal

GBPUSD has turned bearish a week back, exactly at wave A)=C) equality level where zig-zag usually forms a turning point. In fact, decline from above 1.5700 appears to be a leading diagonal which means it's a first leg of a minimum three waves down. Ideally we will see a strong sell-off in black wave 3 after a complete corrective bounce in wave 2 that is expected to find a top around 1.5600 region. A minor reversal back to 1.5460 swing low and broken trend-line connected from 1.5100 swing low would be an important evidence that bearish price action is already underway and ready to accelerate.


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